Easter delivers first signs of iPod growth since start of year

Despite a slowdown in consumer spending, iPods remain one of the top go-to gifts during the holidays, with Easter reportedly driving sales to levels not seen since the start of the year.

Data from market research firm NPD indicates that iPod unit sales grew 2 percent during the week of April 4th, as consumers likely chose some of Apple's more affordable portable media players (PMP) as Easter basket stuffers.

Barclays analyst Ben Reitzes notes that this represents the first week of year-over-year iPod growth since the first week of January. Similarly, sales during that week were likely buoyed by consumers redeeming Apple gift cards that they had received during the holiday month of December.

The Easter boost is a rare burst of light for Apple's iPod business, which was down some 14 percent on a year-over-year basis during the first calendar quarter -- the company's second fiscal quarter -- of 2009 ended March, according to earlier figures coming out of NPD.

As was noted in an earlier report, however, this is fairly consistent with trends in the broader PMP market, which is reportedly fairly saturated when it comes to the US teen demographic. Still, analysts like Reitzes were modeling for a more modest decline in iPod sales to the tune of about a 6 percent falloff for the first quarter.

"However, we continue to believe iPod sales will get support from new shuffle sell-in (launched in March) and stronger international sales that aren’t reflected in NPD data," said Reitzes, who notes that while NPD tracks iPod sales at US-based retail stores including Apple stores, it doesn't factor in online sales through the Cupertino-based company's high-trafficed online store.

In another sign that bodes well for marginal boosts to iPod growth in the immediate future, Apple has reportedly yet to complete its initial channel fill of the new shuffles to big-box retailers. For instance, Reitzes notes that while Wal-Mart.com reflects availability of the tiny clip-on players, a sample of 106 brick-and-mortar stores found that only 25 of them had stock for in-store purchases.

Meanwhile, Amazon.com's list of top-selling digital media players includes nine iPod models and one SanDisk model, with the most popular player being the 8GB iPod touch. It's followed closely by the 16GB iPod touch.

This probably has more to do with early tax refunds due to electronic filings than any Easter basket stuffers. People don't give Easter or Passover gifts- except chocolate and matzo. Whoever is speculating this as the reason is really clueless.

An iPod for Easter?! I wish I could afford to spend that much for a gift for Easter! (iPod could mean a last-gen shuffle I guess).

I dunno... Easter never seemed like the gift-giving holiday to me.

As it is, I am cutting back my cell phone plan, eating habits (cooking more), and what not (selling old computers) for an inevitable job shift. Way to go economy.
So for those who can spend on an iPod for Easter... care to share a little? I don't want an iPod, but some food would be nice!

@ Teckstud: You have a good point there. Though my check went straight to savings!

An iPod for Easter?! I wish I could afford to spend that much for a gift for Easter! (iPod could mean a last-gen shuffle I guess).

I dunno... Easter never seemed like the gift-giving holiday to me.

As it is, I am cutting back my cell phone plan, eating habits (cooking more), and what not (selling old computers) for an inevitable job shift. Way to go economy.

So for those who can spend on an iPod for Easter... care to share a little? I don't want an iPod, but some food would be nice!

This analyst Ben Reitzes must be a complete and utter moron. It's tax refunds and people buying iPods with that refund. It makes complete sense as a refund would most likely cover the cost of an iPod.
Easter basket stuffers indeed- what an idiot!

Horatio Sanz: (music starts)
I don't care that tomorrow is Easter
Christmas is number one.
I don't care about colored eggs
Christmas toys are more fun.
I don't care about marshmallow peeps
The Cadbury bunny gives me the creeps.
I wish it was Christmas today
262 days away.
(music stops)

Jimmy Fallon: Well, What do you think?

Simon Cowell: Absolutely awful! It was truely atrocious, and I'm at a loss for words.
(from this)

This analyst Ben Reitzes must be a complete and utter moron. It's tax refunds and people buying iPods with that refund. It makes complete sense as a refund would most likely cover the cost of an iPod.
Easter basket stuffers indeed- what an idiot!

Hey dude, you need to pop a valium or something -- you just plain grate, at this point.

FYI, Mr, Reitzes is not the one that said "Easter basket stuffers;" it is AI. Please bother to read it before commenting.

While I agree with previous posts on bewilderment of Easter being a gift-giving holiday, I'll counter that just this past Sunday I was surprised (and a bit disappointed) to learn from my nieces and their friends that Easter is, in fact, slowly becoming to more and more people, a gift-giving holiday.

So while I don't disagree that tax refunds may be where the money came from, I would not be at all surprised if those iPods weren't given as gifts in baskets filled with eggs, candy, and brightly colored fake grass.

Just another shining example of how Americans, even in the midst of economic crisis, can find ways to live in excess and turn anything into another opportunity to get stuff.

This probably has more to do with early tax refunds due to electronic filings than any Easter basket stuffers. People don't give Easter or Passover gifts- except chocolate and matzo. Whoever is speculating this as the reason is really clueless.

I'm not sure why people are always in such a hurry to call people morons/clueless/idiots Etc. whenever they hear something different than what they think...

While I agree that tax refunds should be considered as a source for the aparent uptick in iPod sales, it is not mutually exclusive with the Easter theory.

I had two students today show me their new iPod Touches--the first day back from Easter break. One of them said (and I quote) "look what I got for Easter." Sure, it is anecdotal, but it does belie the bolded statement. Remember--not everyone is like you.

I'm not sure why people are always in such a hurry to call people morons/clueless/stupid Etc. whenever they hear something different than what they think...

While I agree that tax refunds should be considered as a source for the aparent uptick in iPod sales, it is not mutually exclusive with the Easter theory.

I had two students today show me their new iPod Touches--the first day back from Easter break. One of them said (and I quote) "look what I got for Easter." Sure, it is anecdotal, but it does belie the bolded statement. Remember--not everyone is like you.

Tax refunds happen every year, so this should happen every year, no? Why only in 2009?

That is a very good point. And Easter falls on a different week from year to year. It appears that article is looking at year over year growth for only one week--which is a dicey proposition. I guess they are saying that the first full week of April this year showed an increase over the first full week of April last year. The Tax reffund sutuation would be the same but this year it also includes possible Easter purchases.

Without also reporting on previous "Easter surges" it is impossible to tell if this year is someting unusual or if there is always a bump in PMP sales the week before Easter. In other words, not much useful information here...

That is a very good point. And Easter falls on a different week from year to year. It appears that article is looking at year over year growth for only one week--which is a dicey proposition. I guess they are saying that the first full week of April this year showed an increase over the first full week of April last year. The Tax reffund sutuation would be the same but this year it also includes possible Easter purchases.

Without also reporting on previous "Easter surges" it is impossible to tell if this year is someting unusual or if there is always a bump in PMP sales the week before Easter. In other words, not much useful information here...

It could also mean that there simply are better iPods this year (read iPod Touch 2G) not to mention a brand new shuffle that every tween is supposedly demanding to own. Top that off with earlier electronic tax filings and higher recession refunds and presto- early April sales increase. No Easter Bunny required.

It could also mean that there simply are better iPods this year (read iPod Touch 2G) not to mention a brand new shuffle that every tween is supposedly demanding to own. Top that off with earlier electronic tax filings and higher recession refunds and presto- early April sales increase. No Easter Bunny required.

Yeah, I agree that there are many possible explanations. Looking at year over year data for one single week is rather close to useless. That is why I concluded with "In other words, not much useful information here... " (as you, yourself quoted).

Nevertheless, I am not sure why you are so positive that there cannot be a connection to Easter.
Your explanation, on the other hand, fails to mention why this is the first year over year weekly increase since January. The 2G iPod Touch has been here for a while... Is it that once you see a chance to call someone a moron and an idiot that you hold on to it with a death grip?